in tandem with the Obama Administration’s stimulus plan prevented a “full replay” of the Great Depression, the Nobel Prize-winning economist writes.

But like President Bush declaring “Mission Accomplished” in 2003, Elliott Wave International founder, Bob Prechter thinks Krugman and Bernanke are premature in declaring victory over the credit crunch. Prechter, who famously predicted the 1987 stock market crash, tells Tech Ticker “the march towards depression, which is being fueled by deflationary trend, is pretty well intact.”

So forget all you’ve heard about recovery and inflation, “we’ve only seen the first phase,” of the downturn according to Prechter. Next to come, is “a credit implosion” that will once again destroy the value of stocks, commodities and especially real estate. “The biggest area of overvaluation because of credit extension is the real estate area,” he says. “And if you’ll notice that’s the area that’s had the weakest of any kind of attempt at a recovery.”

When this next phase of “deflationary depression” happens the only investment advice he can give is: safety first. “Make sure as an individual you’re in the safest possible investments so you can ride this out.” And as discussed in a previous segment, that means investing in dollars or dollar equivalent assets.

2 Responses to “Credit Implosion And Depression Coming, We Are So Screwed”

Invest in dollars or dollar equivalent assets. That’s all these people know about. I hope the whole system crashes, I want to see donald trump on a window ledge, I want to see Gates and Buffett sleeping in cardboard boxes…

But I won’t they’ll luck out and if things get really bad they’ll skip out of the country and live in some foriegn country villa watching the USA unravel from inside itself…